Category:
Buyers

Downtown Manhattan as seen from the Empire State Building - Photo by Tony Sargent (C) 2014

The Manhattan real estate market is picking up again in the luxury sector. While there was a slight lull in the summer between mid-June and July by August properties that had been on the market for a month or two started going to contract. While I was in in San Francisco in July at Inman Connect’s real estate conference speaking on a luxury panel, I heard that the mid-luxury levels in San Francisco and Los Angeles had also been slow for a month or more. Was the market turning?

Traditionally the Fall market in New York is our secondary market – Buyers who did not have a chance to secure a property in the robust spring market re-enter market again in the Fall after a summer off.

I believe the Fall market started early this year – in August. The intense seller’s market for the first six months of the year lead to a slower June and July because of buyer fatigue. Added to that, listing inventory while having climbed somewhat in the 2nd quarter of 2014 over the 1st quarter was still well below the 5-year averages making it more challenging for buyers to find the properties they hoped for – rather than continuing a seemingly futile effort they stopped. (Read Streeteasy’s July Condo Report here)

As a result, in my view the level of pent-up demand is still extremely high. The buyers who are willing to step up and make a quick decision and not sweat the small stuff with regards to negotiations will buy properties this fall. Those buyers who are choosy and question every aspect of the deal or contract will be a disadvantage in negotiations.

For the buyers who’ve decided to stay put in their current homes until ‘the right one’ shows up some will (like many before them) choose instead to stay put and to invest in a country or Hamptons home to provide the escape from Manhattan.

What I’m seeing in the first two weeks of September is that the mid to high-end luxury market is very strong and contracts are getting signed on new properties and those which had seen showings but no contracts. Listings that I have been following as well as new developments also reported signed contracts in the first 19 days of September. For me August was very busy with properties that went to contract including 30 Bond, Penthouse and 200 Eleventh Avenue after multiple bids.

In the luxury development market new properties have started to be announced for the fall market. The face of New York’s residential real estate is changing, as is the design and height limits. With super tall sky-scrapers coming to the city, it will be interesting to see what the future holds for the world’s global elite in terms of luxury offerings in the future. It’s an exciting period in residential design.

An interview with Michael Stern, one of the key developers behind the now renown super-luxury Chelsea development, Walker Tower, which broke price records and paved the way for even more high-end developments downtown. His newest luxury development, Stella Tower has been selling extremely fast in Hell’s Kitchen. CURBED published the floor plans for the yet to be released $14 million Penthouses a week ago. Stella Tower is being marketed by Douglas Elliman. To me, the rapid transformation of fringe neighborhoods into luxury enclaves like West Chelsea and the continued development of Hell’s Kitchen is truly an incredible New York real estate story. While some lament the past, I lived in Hell’s Kitchen in the early 1990’s and one certainly had to watch one’s back walking home at night. Not any more. New York continues to transform as it always has. – NYS Disclosure

One of the most exclusive streets in Noho, Bond Street is receiving a few new luxury neighbors. Currently under construction is Annabelle Selldorf’s 10 Bond Street, which is selling well and receiving praise for its design. Prices start at $4.55 Million (Exclusive is with Corcoran Sunshine). BuzzBuzzHome wrote that 31 Bond Street, a six story cast-iron beauty built in the 1880’s which sold in late 2013 in an off-market deal to Josh Gurwitz’s Good Properties, has just filed its plans for residential conversion; an additional story will be added to the building and it will of course house a trio of luxurious apartments and services to match.

Over the last 20 years Noho, (generally the area between Houston and 8th Street, Broadway and Third Avenue) has evolved into one of the most exclusive residential and bohemian-chic areas of Manhattan. Read more…

I found this video interview between Bloomberg TV’s Rishad Salamat and Timothy Moe on the state of the Asian stock markets extremely informative. With unique insight and perspective, Timothy provides his and Goldman Sachs Group Inc.’s predictions for the 2nd Quarter. New York luxury real estate is increasingly attractive to international investors providing strong returns and increasing profits so I find as a luxury real estate broker, being aware of what’s happening around the world is key to potentially predicting trends in Manhattan’s own market. (Source: Bloomberg – April 4th)

After a robust market in the 1st quarter, inventory continues to be tight and prices are showing upward pressure. I will provide a more detailed update this week, however, I hope you find this video informative to your understanding of Asia and its stock markets. – Tony Sargent

November sunrise over the West Village | Photo by Tony Sargent (C) 2013

This morning I awoke to this spectacular dawn. The opportunity to experience nature as art in our city of steel and concrete is unique and why a New York view costs more.

Ten years ago, buying my first apartment in New York I looked for three months. When I first started looking, the dream apartment I hoped for was bigger and less expensive than the reality turned out to be. Maintenance would be lower. Then I started looking. Read more…

While 2013 has seen Manhattan luxury real estate flying off the market the larger story is that every great 1 to 3-bedroom apartment has 3+ buyers desiring to buy it. Here are 6 reasons why this trend is sustainable:

Manhattan apartment stock is approximately 70% rental. With only 30% of apartments for sale there is already a built in potential for inventory shortage as society becomes increasingly affluent and established. Also while only 25% of apartments are condominiums/new developments, they accounted for approximately 50+% of all sales in the boom years, foreshadowing today’s re-sale inventory shortage. Additionally, co-op owners stay in their units longer than condo owners putting enormous pressure on existing re-sale inventory.

New development construction dried up for five years starting in 2008. Today most new developments are aimed at the high-end market and priced at $2,000+ per square foot leaving overall mid-level re-sale inventory at 12-15 year lows.

As newly minted Social Media and Internet entrepreneurs join the growing ranks of the global “1%” and baby boomers buying in New York, while Wall Street performance continues to be a barometer of the strength of Manhattan’s market, in 2013 the market has become less dependent on Wall Street’s middle level employee bonuses to remain strong.

Lifestyle & Safety = people-friendly, family-friendly and senior-friendly. The safety of Manhattan and New York (look at Brooklyn) has grown exponentially with computer-modeled policing and development of areas once seen as off-limits. Long-time residents mingle with baby-strollers as families decide to remain in New York. The great cultural lifestyle offered in Manhattan is drawing back wealthy baby-boomers to Manhattan from the suburbs while keeping those who would have left 20 years ago, in the city longer.

High Rents and low mortgage rates continue to drive buyers of all price points back to the sales market.

TV, Innovation & Tech: Entertainment filmed in New York adds to the city’s appeal to people, globally.

A beacon for leading creative or financial professionals, as well as global entrepreneurs desiring to make a splash, all arrows are pointing up again in New York.

The luxury real estate story in Manhattan for over a year has been about declining inventory and sharply rising property prices. I have had multiple bids on most of my listings in 2013. At the top of the luxury market competition for the best lines and views continued to rise over the Spring and into the early summer. This CNBC video shares a bit more of the story.